The glass product manufacturing industry in the U.S. is estimated
to grow 2 percent in 2012-2017, but the plastic and metal substitutes
will limit its growth, according to a recent report titled "Glass
Product Manufacturing in the U.S." from IBISWorld in Santa
Monica, Calif.

Industry sales have decreased since the late 1990s, but increased
in the mid-2000s. Consequently, revenue is expected to go down an
average of 1.6 percent over the years 2007-2012. In 2012, the glass
product manufacturing industry in the U.S., encompassing 1,739 businesses,
is expected to post $22.7 billion in revenue and $2.1 billion in
profits.

The report analyzed four main product categories: flat glass, pressed
or blown glass, glass containers and glass products made from purchased
glass, such as mirrors, lighting and kitchenware.

The decline in the domestic manufacturing industry is partly because
of imports and partly due to the substitution of glass container
products by alternative packaging materials, such as aluminum cans
and plastic bottles, according to the report. This trend is expected
to continue.

The demand for automotive glass products also will continue to be
weak, as the volume of U.S. automotive production went down at an
average rate of 18.4 percent per year 2007-2010.

The flat glass segment's total revenue went down at an average of
6.8 percent per year from 2007-2012 as a result of the recent slump
in the construction industry. However, demand for flat glass from
the construction market is expected to pick up 5.5 percent per year
over the period of 2012-2017.

While flat glass used in window manufacturing does not have competitive
substitutes, glass used in cladding building envelopes faces competition
in traditional cladding, such as steel, timber and bricks. However,
glass is estimated to have an increased share of the building envelope
market over the last decade and this trend is likely to continue,
the report states.

Industry wages also are expected to drop from 2007-2012 at an average
of 1.7 percent per year to $5 billion, and employment is expected
to go down at an average annual rate of 2.2 percent, according to
the report. The number of firms is expected to reduce at an annual
average rate of 0.7 percent to 1,680 firms in 2017 as a result of
consolidation.